Identity theft happens whenever someone uses your personal identification to commit fraud or other types of crimes. They may use your name, credit card number, or your Social Security number (or other identifying information).

According to the Federal Trade Commission (FTC) in the United States, some 9 million Americans have their identities stolen every year. They also state that identity theft is likely to affect most people in some way. The thief may rent an apartment using someone else's name. He/She may open a line of credit or use your own line of credit for his/her buying needs. He/She may apply for a job using your identification.

The effects of identity theft are very real. Your credit may be destroyed. You may have more debt than you should. You may be denied school loans or other types of loans due to poor credit or overuse of credit. You may even lose out on job opportunities if the case becomes severe enough.